Oil prices dropped sharply as growing optimism surrounding possible US-Iran negotiations eased fears of prolonged supply disruptions in the Middle East.

U.S. crude oil prices fell by nearly 4.7% as traders reacted positively to reports suggesting possible progress toward a diplomatic agreement between the United States and Iran.

Market analysts say hopes of easing tensions and reopening shipping routes around the Strait of Hormuz reduced fears of global supply disruptions, putting downward pressure on oil prices.

West Texas Intermediate (WTI) crude dropped to around $92 per barrel during trading, while Brent crude also recorded major declines. Investors believe a successful deal could help stabilize global energy markets after months of volatility linked to Middle East tensions.

However, experts warn that negotiations remain uncertain and geopolitical risks could quickly reverse market sentiment if talks collapse or tensions escalate again.

Disclaimer:

Oil markets are highly volatile and prices may change rapidly during global trading sessions depending on geopolitical developments and economic data.